What is Behavioral Targeting?
Behavioral targeting, also known as online or interest-based advertising, is a process of displaying targeted advertisements to internet users based on their behaviors, interests, preferences, and past activities.
The process of behavioral targeting involves tracking user’s online activities such as search queries, websites visited, products purchased, and videos watched, and using that data to show that user personalized advertisements.
Behavioral targeting is becoming popular in the advertising industry because it provides advertisers with a more sophisticated way to reach their target audience, which translates to higher conversion rates and revenue.
Why Do Advertisements Follow You Around Online?
Have you ever searched for a product or service online, and then noticed that advertisements for that same product or service keep popping up while you’re browsing other websites?
This is called “advertisement retargeting,” and it’s a form of behavioral targeting that tracks your online activities and displays ads tailored to your interests and recent activity. The aim of retargeting ads is to remind you of a product or service you were interested in previously and encourage you to take action, such as making a purchase.
How Does Behavioral Targeting Work?
Behavioral targeting works by collecting information about your browsing activities using various tracking technologies. This information is usually collected via cookies, which are small text files stored on your computer or mobile device when you visit a website.
The cookies store data about your site visits, what products you clicked on, how long you spent on a particular website, and other information related to your browsing behavior. This data is then sent to advertisers who use it to display ads that are more relevant to your interests.
Behavioral targeting can also use other methods such as device fingerprinting, which tracks unique identifiers in your device's software or hardware, and IP address tracking, which uses geo-targeting technology to deliver location-specific ads.
Is Behavioral Targeting Privacy-Invasive?
Although behavioral targeting has numerous benefits for businesses and advertisers, many people are concerned about the privacy implications of this marketing technique.
The collection and use of personal data without users' consent or knowledge are viewed by many as an invasion of privacy. Additionally, some argue that the use of behavioral tracking technology can also lead to discrimination and bias in advertising.
However, it is important to note that many advertising companies and platforms use anonymization techniques and comply with privacy laws and regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
How to Opt-Out of Behavioral Targeting?
If you’re uncomfortable with your online activities being tracked and used for advertising purposes, there are several ways to opt-out of behavioral targeting.
One way to opt-out is to use browser extensions or ad-blockers that block cookies and other tracking technologies. You can also configure your browser settings to refuse cookies altogether.
Another way to opt-out of behavioral targeting is to use the Digital Advertising Alliance's (DAA) opt-out tool, which provides a centralized platform for consumers to opt-out of targeted advertising from participating companies.
It's important to note that opting-out of behavioral targeting doesn't mean you won't see online ads anymore. It just means that the ads won't be targeted to your browsing behavior and interests.
The Bottom Line
Behavioral targeting is a powerful marketing technique that enables businesses to deliver personalized and relevant advertisements to their target audience. Although it is a controversial marketing practice, it is also an effective way to increase conversion rates and revenue.
However, it is important to be aware of the data collection process and the privacy implications of behavioral targeting. If you are uncomfortable with the idea of your online activities being tracked and used for advertising purposes, consider opting-out of behavioral targeting or using ad-blockers.
Ultimately, as consumers, we should be aware of our rights to privacy and ensure that companies and advertisers are transparent and accountable for the collection and use of our personal data.
